Correlation Between Sp 500 and Oppenheimer Main
Can any of the company-specific risk be diversified away by investing in both Sp 500 and Oppenheimer Main at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Sp 500 and Oppenheimer Main into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sp 500 Index and Oppenheimer Main Street, you can compare the effects of market volatilities on Sp 500 and Oppenheimer Main and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Sp 500 with a short position of Oppenheimer Main. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sp 500 and Oppenheimer Main.
Diversification Opportunities for Sp 500 and Oppenheimer Main
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between SPFIX and Oppenheimer is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Sp 500 Index and Oppenheimer Main Street in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Main Street and Sp 500 is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Sp 500 Index are associated (or correlated) with Oppenheimer Main. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Main Street has no effect on the direction of Sp 500 i.e., Sp 500 and Oppenheimer Main go up and down completely randomly.
Pair Corralation between Sp 500 and Oppenheimer Main
Assuming the 90 days horizon Sp 500 Index is expected to under-perform the Oppenheimer Main. In addition to that, Sp 500 is 1.48 times more volatile than Oppenheimer Main Street. It trades about -0.1 of its total potential returns per unit of risk. Oppenheimer Main Street is currently generating about 0.13 per unit of volatility. If you would invest 2,248 in Oppenheimer Main Street on September 13, 2024 and sell it today you would earn a total of 143.00 from holding Oppenheimer Main Street or generate 6.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sp 500 Index vs. Oppenheimer Main Street
Performance |
| Timeline |
| Sp 500 Index |
| Oppenheimer Main Street |
Sp 500 and Oppenheimer Main Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sp 500 and Oppenheimer Main
The main advantage of trading using opposite Sp 500 and Oppenheimer Main positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sp 500 position performs unexpectedly, Oppenheimer Main can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Oppenheimer Main will offset losses from the drop in Oppenheimer Main's long position.| Sp 500 vs. Sp Midcap Index | Sp 500 vs. Sp Smallcap Index | Sp 500 vs. Dreyfus Institutional Sp | Sp 500 vs. Deutsche Sp 500 |
| Oppenheimer Main vs. Short Precious Metals | Oppenheimer Main vs. Gamco Global Gold | Oppenheimer Main vs. Fidelity Advisor Gold | Oppenheimer Main vs. Global Gold Fund |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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